Inclusive Banking

Overview

The group incorporates a new business model, to provide small and affordable financial services in under-served areas through Micro Finance institutions, in a commercially viable and financially sustainable manner. The products are delivered in collaboration with intermediaries, who have good physical and social reach, thus leveraging on their distribution strength and lowering barriers. The approach satisfactorily addresses the unique and profound challenges of serving the segment and helps the key requirements of the clients, at the base of the pyramid via flexibility, simplicity, speed, accessibility and convenience. While the current offerings are Savings and Credit, there is scope of offering 'vulnerability reducing' products such as Insurance, Pension etc.

The fundamental design principle of the groups approach is that of deconstructing the Value Chain by figuring out which activities to keep in-house and which to outsource, or pursue through partnerships within the permitted regulatory framework. The customers are usually women. The loans are put to variety of uses ranging from agriculture, petty shops, livestock, education, high cost debt redemption, tailoring, ready-made garments, consumption etc. The wholesaling approach helps us leverage the financial strength of the bank with the local understanding of the MFI thereby reaching the client in a cost effective manner.